Annual report pursuant to Section 13 and 15(d)

Note 14 - Stock Based Compensation and Employee Benefits Plans

v3.21.2
Note 14 - Stock Based Compensation and Employee Benefits Plans
12 Months Ended
Mar. 27, 2021
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
Note
14.
Stock Based Compensation and Employee Benefit Plans
 
The Company maintains a
2018
Equity Incentive Plan which provides for the issuance of up to
416,667
shares of common stock upon the exercise of options, stock awards and grants. With the adoption of the
2018
Equity Incentive Plan,
no
further awards will be issued under the Company's
2005
Equity Incentive Plan, though all awards under the
2005
Equity Incentive Plan that are outstanding will continue to be governed by the terms, conditions and procedures set forth in the plan and any applicable award agreement.
 
During the
fourth
quarter of fiscal year
2021,
the Company granted options for
138,000
shares which vest in full upon the
first
anniversary of the grant. All other outstanding options generally vest over a
four
or
five
-year service period. The vested portion of all option grants
may
be exercised only while the grantee is employed by the Company (or while providing services under a service arrangement in the case of non-employees) or within a certain period after termination of employment or service arrangement in the case of non-employees. Options granted to employees shall
not
have terms in excess of
10
years from the grant date. Holders of options
may
be granted stock appreciation rights (“SARs”), which entitle them to surrender outstanding awards for a cash distribution under certain changes in ownership of the Company, as defined in the stock option plan. As of
March 27, 2021
and
March 28, 2020,
no
SARs have been granted under any option plan. As of
March 27, 2021,
there were
144,443
shares of common stock available for issuance of additional awards under the
2018
Equity Incentive Plan. The Company records compensation cost associated with stock-based compensation equivalent to the estimated fair value of the awards over the requisite service period. 
 
Stock Options
 
The weighted average fair value of stock options granted during the fiscal years ended
March 27, 2021 
and
March 28, 2020
was
$3.48
and
$3.75,
respectively, and was calculated using the following weighted-average assumptions:
 
   
Fiscal Years ended
 
Category
 
March 27, 2021
   
March 28, 2020
 
Dividend yield
   
     
 
Expected volatility
   
106
%    
105
%
Risk-free interest rate
   
0.39
%    
2.21
%
Expected term (years)
   
5.50
     
8.35
 
 
A summary of stock options activity for the fiscal years ended
March 27, 2021 
and
March 28, 2020
is presented below:
 
Description
(Dollars in thousands except share prices)
 
Shares
   
Weighted
Average Price
per share
   
Weighted Average
Remaining
Contractual Term
(Years)
   
Aggregate
Intrinsic
Value
 
                                 
Outstanding at March 30, 2019
   
182,366
    $
6.15
     
8.40
    $
 
                                 
Granted
   
73,880
     
4.98
     
9.20
     
 
Forfeited / Expired
   
(15,488
)    
5.13
     
     
 
Outstanding at March 28, 2020
   
240,758
    $
5.86
     
7.90
    $
 
                                 
Granted
   
148,000
     
3.53
     
9.30
     
 
Forfeited / Expired
   
(13,950
)    
4.15
     
     
 
Outstanding at March 27, 2021
   
374,808
    $
5.00
     
7.90
    $
99,310
 
                                 
Exercisable at March 27, 2021
   
153,395
    $
6.42
     
6.30
    $
2,823
 
                                 
Expected to vest in the future
   
178,682
    $
3.96
     
9.10
    $
83,097
 
 
As of
March 27, 2021,
there was approximately
$488,000
of total unrecognized compensation cost related to non-vested options granted under the
2018
Plan and outside of the
2018
Plan. That cost is expected to be recognized over a weighted average period of
3.3
years and will be adjusted as forfeitures occur. There were
76,153
and
48,956
options vested during the fiscal years ended
March 27, 2021
and
March 28, 2020,
respectively. The total fair value of options vested during the fiscal years ended
March 27, 2021 
and
March 28, 2020
was
$366,878
and
$206,255,
respectively. There were
no
exercises in fiscal
2021
and
2020.
Stock based compensation cost for stock options recognized in operating results for the fiscal years ended
March 27, 2021
and
March 28, 2020
totaled
$314,300
and
$213,000,
respectively.
 
Restricted Stock
 
The restricted stock awards are considered fixed awards as the number of shares and fair value at the grant date are amortized over the requisite service period net of estimated forfeitures. As of
March 27, 2021,
there was
no
unrecognized compensation cost related to non-vested awards. Compensation cost recognized for restricted stock for fiscal
2021
and fiscal
2020
totaled
$39,700
and
$88,000,
respectively.
 
A summary of the changes in non-vested restricted stock awards outstanding for the fiscal years ended
March 27, 2021 
and
March 28, 2020
is presented below:
 
Restricted Stock Awards
 
Shares
   
Weighted
Average Grant
Date Fair Value
 
Non-vested at March 31, 2019
   
22,343
    $
8.40
 
Granted
   
10,000
     
3.97
 
Vested
   
(21,009
)    
8.25
 
Forfeited or cancelled
   
(1,334
)    
12.00
 
Non-vested at March 28, 2020
   
10,000
     
3.97
 
Vested
   
(10,000
)    
3.97
 
Non-vested at March 27, 2021
   
    $
 
 
401
(k) Plan
 
The Company has established a
401
(k) plan which covers substantially all employees. Participants
may
make voluntary contributions to the plan for up to
100%
of their defined compensation. The Company matches a percentage of the participant's contributions in accordance with the plan. Participants vest ratably in Company contributions over a
four
- year period. Company contributions to the
401
(k) plan for fiscal
2021
and
2020
were approximately
$17,000
and
$22,000,
respectively.